The Maldivian government has recently completed the sale of its 30% ownership share in Addu Investment Pvt Ltd, the operating company behind the Shangri-La Villingili Resort. This action follows the resort’s closure in response to the Covid-19 pandemic’s onset in 2020.
The Shangri-La Villingili Resort, inaugurated in 2009, ceased operations due to the pandemic and has remained inactive since then. This prolonged closure had economic consequences, resulting in job losses in the Addu region and a decline in tourism across the southernmost atoll.
Minister Mausoom emphasized that the sale of the government’s share will facilitate the reopening of the resort and reaffirmed the government’s commitment to supporting this process, which includes obtaining necessary permissions. Brice Lunot, General Manager of Shangri-La Maldives, expressed optimism about utilizing the government’s decision to reinvigorate the resort and exploring potential partnerships to expedite its reopening.
The government’s divestment from Shangri-La was enabled through modifications in parliamentary regulations, entailing a payment of USD 80 million. While Minister Mausoom did not provide detailed insights into the share transfer procedure, he acknowledged that the associated costs and the evaluated value of the entire investment were pivotal considerations in reaching this conclusion.
The predominant 70% ownership retained by Addu Investments Pvt Ltd, the company that holds ownership of the resort, remains unaffected. Earlier in the year, US investment firm CBRE Group was engaged to facilitate the resort’s sale by Addu Investments. Nevertheless, the current status of this sales initiative remains uncertain.
Positioned within the Addu Atoll, the Shangri-La Villingili Resort materialized in 2009 through a collaborative effort between the Maldivian government and the Shangri-La Group. The resort occupies an expanse of 50.6 hectares, providing accommodation with a total capacity of 284 beds.
